Nebraska Law Creates Employment Pilot Project
On June 4, 2013 Nebraska Governor Dave Heineman signed LB 368 into law. LB 368, introduced by State Senator Sue Crawford, creates a subsidized employment pilot project that creates new job opportunities for low-income Nebraskans and allows businesses to expand and grow their businesses. The design of the program is flexible, allowing nonprofits to serve populations as varied as former foster care youth who are aging out of the system, unemployed veterans returning to civilian life or former inmates who are starting over following their release from prison. The project also includes data collection provisions and will serve Nebraskans in both urban and rural areas.
Using TANF rainy day funds available to the state, the pilot program will operate for four years and will provide job experience for approximately 150 people each year. LB 368’s subsidized employment pilot program pays an employer partner 100% of the wages for the first two months. The wage subsidy received by the employer decreases over the course of six months. As the subsidy decreases, the employers invest more and more of their own money into these employees. By the end of the six months, businesses will cover 100% of the cost of employment.
“While Nebraska’s overall unemployment rate is relatively low, we still have populations in Nebraska who have not shared in this prosperity,” said Senator Sue Crawford. “LB 368’s business incentives will help minimize the risks small businesses face when they are looking to expand their workforce and help ensure that more Nebraskans are able to achieve long-term, self-sustaining employment.” The pilot project will begin on July 1, 2014.